A new report on Ontario’s housing market has confirmed what many young people already know: homeownership is out of reach for most middle-class buyers.
The report by Mike Moffatt at the Missing Middle Initiative, commissioned by the Ontario Home Builders’ Association (OHBA), found that 11 out of 26 Ontario municipalities are now “completely unattainable” for middle-income households.
Over the last 20 years, home prices have more than doubled, while inflation-adjusted wages have increased by just 16 per cent.
“Young people are out of options when it comes to housing in our province,” said Scott Andison, CEO of OHBA. “Unless you earn far above the average salary or get financial help from family, buying a home in Ontario is nearly impossible.”
The report shows that the price-to-income ratio in major markets like Toronto, Hamilton, Kitchener, Guelph and Barrie now exceeds 7, meaning homes cost are over seven times the average annual pre-tax income.
Buyers are also spending 65 per cent or more of their monthly income on housing.
OHBA is calling for urgent government action, including cutting development fees, streamlining municipal approval processes and investing in infrastructure to increase housing supply.
“This situation is unsustainable,” added Kirstin Jensen, OHBA vice-president of policy. “We need real solutions to make housing affordable again.”
(Written by: Joseph Goden)
